The founder of Bridgewater Associates, Ray Dalio, has previously said he owns some bitcoins put a clearer figure here, saying that it was about 1% of his portfolio in a few hours.
However, the hedge fund mogul said Bitcoin still faces significant structural challenges before it can realistically be considered a global reserve asset.
“I have a small percentage of bitcoin,” He told CNBC on Thursday. “I’ve had it forever, like 1% of my portfolio.”
Preventing its adoption as a reserve currency, Dalio said, are issues such as its traceability, transactional transparency and vulnerability in light of advances in quantum computing.
“I think the problem with Bitcoin is that it will not be a reserve currency for major countries because it can be tracked and it can be, it can be imagined that there is a controlled amount of computing, that can be hacked, and so on,” said Dalio, stressing that governments will not adopt financial products that record in a public and permanent way.
More recently, Dalio called With investors to allocate 15% of their portfolios to Bitcoin and gold, an asset he said he prefers. “The advantage of gold is that it is an asset that you can hold, and you don’t depend on someone to give it to you.”
In a broader sense, Dalio warned the US economy is about 80% of the way into a bubble similar to those that preceded the crash of 1929 and the collapse of the dot-com era of 2000.
The multi-billionaire hedge fund manager explained that his predictions come from his bubble indicator, which tracks data going back to 1900. He said it tracks multiple metrics, including leverage, money supply, and wealth concentration, to assess market weakness.
“The picture is pretty clear, in that we’re in that bubble territory,” Dalio said.
